Help - mortgage want to charge me £3000 to leave even though product doesn't start until Jan 2023
diolchynfawr
Forumite 2 Posts
I have two parts to my mortgage. The first part comes to an end in December. I had to buy my husband out so livng on my own. When the mortgage rates were going mad I arranged a fixed deal for 3 years (6% ish) I was told that I could get a better deal if the mortgage rate comes down. The rate with accord is now 5.27 for the same product. They have told me that I cannot come out of the product as it is beyond the 2 week cooling off period so I have to pay £3000. I have told them that this wasn't what I was advised. A complaint has been submitted. Any advice?
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I'd be very suprised if a lender told you this, as you'd expect they'd know their own terms and conditions (but stranger things have happened I guess).
I understand that it leaves a bitter taste in ones mouth...
14th Day: "sure you can change for free"
15th Day: "impossible, only way is if you give us £3k"
Even if you weren't able to have them change it without penalty, on my ~£250k mortgage, the difference between those interest rates is about £100 p/m... so with your options I'd save about £600 over the three years changing to the new fixed deal... crazy.
How did you speak to them? Was it by telephone? If you're sure they advised you that you could change your mortgage up until you physically paid the first payment, then it may be worth asking for a copy of the telephone recording?
I suspect you didnt use an adviser in that case.
at the end of the day, it will come down to the recording of the telephone call.
Who is the current mortgage with? Accord?
And you arranged a forward dated Product Transfer to start at the beginning of January when your current deal expires?
You were under the impression that you could cancel this agreement and take a new one if the rate was lower as long as it hadnt changed over yet
This has been quite a common thing to do for clients over the last few months and the vast majority of lenders allow this in some form.
It may be the case that there has been some misinformation given to you and Accord may have a policy where you are locked in once the button is pressed (i dont know the answer and i cant easily find it online).
What i can see is that if you spoke to an accord mortgage advisor then this is an advised service. The only non advised service is through the online portal. Also being a large financial institution means its pretty much a certainty that they record all their calls so if i was in your shoes I would raise a complaint that you have been misinformed and you might have made a different decision if the information given to you was accurate.
I would expect them to listen to the call recording and if you have been given wrong info then they will put it right and move you to the cheaper deal without penalty.
Just got to make contact and take it one step at a time.
On another point, no chance that moving to a new lender is beneficial? That still isnt a great rate that you are trying to move to
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.